Maharashtra Raises Vehicle Tax Cap to ₹30 Lakh, Impacting Car and CV Prices

Key Highlights:

• One-time tax cap raised from ₹20L to ₹30L.
• Luxury cars to face ₹10L+ higher tax.
• Petrol/diesel tax: up to 13–15% for ₹20L+ cars.
• CNG/LNG tax hiked by 1%.
• Goods carriers are taxed at 7% of the price, not the weight.

Starting July 1, 2025, the cost of owning certain types of vehicles in Maharashtra is set to rise as the state government has implemented a revised one-time tax policy. This new structure affects high-end cars, CNG/LNG vehicles, and goods carriers, while electric vehicles will continue to enjoy full tax exemption.

Higher Cap, Higher Tax

The cap on one-time tax has been increased from ₹20 lakh to ₹30 lakh. This means vehicles with an ex-showroom price of more than ₹20 lakh will now have a minimum tax increase of ₹10 lakh. According to transport department officials, for instance, petrol and diesel luxury cars priced around ₹1.33 crore and ₹1.54 crore, respectively, will now draw more than ₹20 lakh in one-time tax.

Tax Slabs for Petrol and Diesel Vehicles

The revised tax rates depend on the type of fuel and the vehicle's price:

For Petrol Cars (registered under individual names):

• Below ₹10 lakh: 11% of the ex-showroom price
• ₹10 lakh to ₹20 lakh: 12%
• Above ₹20 lakh: 13%

For Diesel Cars (registered under individual names):

• Below ₹10 lakh: 13%
• ₹10 lakh to ₹20 lakh: 14%
• Above ₹20 lakh: 15%

CNG and LNG Vehicles Also Impacted

CNG and LNG vehicles, regardless of their price, will now face an additional 1% hike in the one-time tax. The increase applies across all three existing tax brackets.

Company-Registered and Imported Vehicles to Attract Flat 20% Tax

If a petrol or diesel vehicle is imported or registered under a company name, it will now attract a flat 20% one-time tax, irrespective of its cost. This move is likely to impact businesses and fleet operators who register vehicles under company ownership.

Big Change for Goods Carriers

Goods carriers such as pickuptrucks, tempos (up to 7,500 kg GVW), and construction vehicles like cranes and compressors will now be taxed based on their purchase price. The new rate is 7% of the purchase cost. Previously, the tax for these vehicles was calculated based on their weight.

Example: A pickup truck priced at ₹10 lakh that earlier paid about ₹20,000 in one-time tax (weight-based) will now be charged ₹70,000 under the price-based system. Earlier, taxes for goods vehicles ranged from ₹8,400 to ₹37,800 depending on weight (750 kg to 7,500 kg), as per the transport department's data.

EVs Remain Exempt from Tax

There is no change in tax policy for electric vehicles (EVs). They will continue to be exempt from the one-time tax in Maharashtra. Although the state had initially proposed a 6% tax on EVs priced above ₹30 lakh, that plan has now been officially dropped.

Also Read: Tata Motors Registered 30,238 Commercial Vehicle Sales in June 2025

CMV360 Says

The new tax structure reflects Maharashtra’s focus on generating higher revenue from luxury and commercial vehicles while promoting cleaner transportation. Buyers planning to purchase high-end petrol/diesel cars, CNG/LNG vehicles, or goods carriers should be prepared for higher upfront costs starting this month. However, the move reinforces the state’s support for electric mobility by maintaining full tax exemption for EVs.